1. National Association of Black Accountants, Inc. Budgeting M ney $ense

2. Money Management

3. What is one of the first steps to achieving your financial goals?

4. Budgeting

5. Purpose of a Budget Allows you to examine how you earn money and how you spend it Allows you to examine how you earn money and how you spend it Helps you use your money for your needs and wants while achieving your goals Helps you use your money for your needs and wants while achieving your goals

6. Building Your Budget Use personal finance software Use personal finance software List sources of income List sources of income Identify major expenses Identify major expenses Record every expenditure Record every expenditure Cut back where necessary Cut back where necessary Monitor regularly Monitor regularly

7. Sample Budget Gross monthly income Gross monthly income Net income Net income Fixed expenses Fixed expenses Flexible expenses Flexible expenses

8. Sample Budget Discretionary expenses Discretionary expenses Total it up Total it up Increase your savings Increase your savings

9. Sample Budget Plan Areas Monthly Expenses Housing Child care & education Insurance premiums Mortgage/Rent Mortgage/Rent Child care/babysitters Child care/babysitters Medical/dental insurance Medical/dental insurance Utilities Utilities Education expenses Education expenses Auto insurance Auto insurance Property taxes Property taxes Consumer debt Home/renters insurance Home/renters insurance Maintenance & Supplies Maintenance & Supplies Auto payments Auto payments Life insurance Life insurance Food Credit card payments Credit card payments Disability insurance Disability insurance Groceries Groceries Other debt payments Other debt payments Other insurance premiums Other insurance premiums Dining Out Dining OutClothingMiscellaneous Transportation Medical Expenses Fun, vacations, travel Fun, vacations, travel Fuel & Maintenance Fuel & Maintenance Doctor; Dentist Doctor; Dentist Church/charities Church/charities Prescriptions PrescriptionsOther

10. Monitoring Your Budget Periodic review Periodic review Envelope System Envelope System Checking Account Checking Account

11. Tips to Stay on Track Involve the entire family: Agree on a budget up front and meet regularly to check your progress Involve the entire family: Agree on a budget up front and meet regularly to check your progress Stay disciplined: Try to make budgeting a part of your daily routine Stay disciplined: Try to make budgeting a part of your daily routine Start your new budget at a time when it will be easy to follow and stick with the plan (e.g., the beginning of the year, as opposed to right before the holidays) Start your new budget at a time when it will be easy to follow and stick with the plan (e.g., the beginning of the year, as opposed to right before the holidays)

12. Tips to Stay on Track Find a budgeting system that fits your needs (e.g., budgeting software) Find a budgeting system that fits your needs (e.g., budgeting software) Distinguish between expenses that are "wants" (e.g., designer shoes) and expenses that are "needs" (e.g., groceries) Distinguish between expenses that are "wants" (e.g., designer shoes) and expenses that are "needs" (e.g., groceries) Build rewards into your budget (e.g., eat out every other week) Build rewards into your budget (e.g., eat out every other week) Avoid using credit cards to pay for everyday expenses: It may seem like you're spending less, but your credit card debt will continue to increase Avoid using credit cards to pay for everyday expenses: It may seem like you're spending less, but your credit card debt will continue to increase

13. What You’ve Learned The purpose of a budget The purpose of a budget The benefits of a budget and how it works The benefits of a budget and how it works How basic tools can help your budget work for you How basic tools can help your budget work for you

14. Financial literacy isn’t just a matter of knowing what you have and knowing your options. It is a matter of planning for life’s milestones.

15. Thank You! National Association of Black Accountants, Inc. M ney $ense For more information visit www.nabainc.org

16. 360 Degrees of Financial Literacy 360 Degrees of Financial Literacy is a national effort of the CPA profession to improve the financial understanding of Americans. It provides a comprehensive approach to financial education, focusing on the information Americans need at every life stage, from childhood to retirement. CPAs volunteer their time and expertise to educate members of their communities about financial issues. 360 Degrees of Financial Literacy is a national effort of the CPA profession to improve the financial understanding of Americans. It provides a comprehensive approach to financial education, focusing on the information Americans need at every life stage, from childhood to retirement. CPAs volunteer their time and expertise to educate members of their communities about financial issues. Visit www.360financialliteracy.org for tools to help you make sound financial decisions. Visit www.360financialliteracy.org for tools to help you make sound financial decisions.www.360financialliteracy.org